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Monday, 30 June 2014

A summary of Kisumu County Budget for the FY 2013/2014 -- County Governments Budget Implementation Review Report

Part of County Governments Budget Implementation Review Report that focuses on Kisumu county

A summary of Kisumu County Budget for the HELF YEAR FY2013/2014 ,
revenue and expenditure for the period July to December, 2013.

Kisumu County

The
budget of Kisumu County for the FY2013/2014 was Kshs 8.3 billion. The
budget has allocated Kshs 5.8 billion (70%) for recurrent activities and
Kshs 2.5 billion (30%) for development projects. The expected annual
revenue for the County is Kshs.4.9 billion (59%) from the national
equitable share and Kshs.3.4 billion (41%) from local revenue sources.
During
the first six months of the FY 2013/2014, the County received Kshs 1.6
billion (80%) as national sharable revenue, Kshs 210.3million (11%) from
local revenue collections and unspent balance brought forward from last
financial year of Kshs 179.5 million (9%). Local revenue collected in
the second quarter was Kshs.101.8 million which is a slight decline from
the Kshs.108.5 million collected in the first quarter. The total local
revenue collection was 6.2 per cent of the annual revenue target. The
major sources of local revenue were parking fees (39.4%), Market fees
(18.5%), and land rates (9.1%).
Total funds released for the period
was Kshs.1.3 billion comprising of Kshs 1.1 billion (85%) for recurrent
activities and Kshs 190 million (15%) for development programmes.

Total Expenditure Analysis, Kisumu County

The
total expenditure for the period under review amounted to Kshs. 863
million representing 67.2 per cent of the funds released. However, the
total expenditure represents an absorption rate of 10 per cent of the
annual budget. A breakdown of the expenditure shows that the County
spent Kshs.796.7 million (92.4%), on recurrent expenditure, Kshs.53.6
million (6.2%) on debt repayment, and Kshs. 12.5 million (1.4%) on
development project.
The recurrent expenditure for the period July to
December, 2013 represented 72 per cent of the funds released for
recurrent activities. However, this was an absorption rate of 7 per cent
of the annual recurrent budget. Likewise, the development expenditure
was 7 per cent of the development funds released during the period
translating to an absorption rate of 5 per cent of the annual
development budget.
An analysis of the recurrent expenditure shows
that the County spent Kshs. 548 million (63.5%) on personnel emoluments
and Kshs.248.7 million (28.8%) on operations and maintenance. Further
breakdown of the operations and maintenance shows that Kshs. 27.7
million (10.8%) was spent on travel costs and accommodation allowances,
Kshs. 26.1 million (10.2%) on purchase of vehicles, Kshs.23 million (9%)
on routine maintenance, Kshs. 19.4 million (7.6%) on training, Kshs.
12.2 million (4.7%) on conferences and hospitality and Kshs.11 million
(4%) on printing, advertising and information supplies. Sitting
allowances for MCAs was Kshs. 13.4 million (5.2%) and the remaining
Kshs.115.9 (47%) was spent on other operations and maintenance such as
purchase of furniture, stationery, and fuel among other expenditure. All
the development expenditure reported was on purchase of land.
It was observed that the County under-performed in its local revenue collection by
achieving 6.2 per cent of its annual target. Additionally, development
funds are thinly allocated across many projects. In order to address the
aforementioned, the County needs to enhance its revenue collection
measures to address the declining local revenue performance. Development
projects with high impact to the public should be given priority in
subsequent budgets.SOURCE: County Governments Budget Implementation Review Report
HELF YEAR FY2013/2014
FEBRUARY, 2014